Nitro - obviously you've considered an IB options account, but are not happy to leg in and out of spreads. I am just opening an IB options account in which I intend to use OEX debit spreads, legging into the long position first, legging out of the short positon first.

Have you found this to be unsatisfactory ? I have checked out the optionsxpress site & it seems vey user friendly, but a lot more expensive than IB. Do you have expereience of IB's option fills (my only IB experience with IB is with eminis, where they are mostly excellent) ?

Nitro - obviously you've considered an IB options account, but are not happy to leg in and out of spreads. I am just opening an IB options account in which I intend to use OEX debit spreads, legging into the long position first, legging out of the short positon first.

Have you found this to be unsatisfactory ? I have checked out the optionsxpress site & it seems vey user friendly, but a lot more expensive than IB. Do you have expereience of IB's option fills (my only IB experience with IB is with eminis, where they are mostly excellent) ?

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J-Trade,

I have an IB account, and it is not so much that I am unhappy witht it for options, as I am looking for a broker that has the capacity to do complex options strategies "at once."

I, like you, wish that IB had the capacity to do this, as other brokers either have a minimum commission, or are too expensive.

I have legged into options positions at IB - mostly to set up conversions so that I can short a stock without the uptick rule. However, if you go to a prop firm like Bright, etc, you can grab bullets at lightning speed on any stock, cheaply. This is what I am trying to duplicate on the retail level as much as possible, but on more than just bullets, if at all possible...

A note on multiple leg option orders(straddles,butterfly's etc). Correct me if I'm wrong, but to my knowledge, no autoex(automatic execution exchange system) will accept multiple sides of option orders and execute them at the same time. If you have
a web based browser trading platform with order entry for multiple orders(straddlles etc.), then your broker is sending your
orders to a floor broker for multiple leg execution . Straddle's and all multiple leg option orders should be executed at the same time since lifting a leg may result in a substantial loss in volatile markets. A number of firms I know have multiple leg order entry
(browser based) for option spreads, including R.F. Laffertey,Benjamin & Jerold and Mr. Stock. I am not familiar with IB or Preffered, but I hear their option execution is very good . I
would suggest that no trader try to execute each side on an exchange auto-ex since if one side is broken(by exchange or MM),
you may have a substantial loss. If you do leg out of spreads,
leg out 10 contracts or less at a time on exchange auto-ex systems. At Lieber & Weissman, we execute on the ISE auto-Ex
with very good results. I welcome any comments from other traders. I also have a free option analytics on my site atwww.stocktrade.net/Links/fr_tools_all.htm .

Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies of this document are available from your broker or the Chicago Board Options Exchange, 400 S. LaSalle Street, Chicago, IL 60605

It is my understanding that any spread order that is accepted by a brokerage firm is also sent to one exchange as opposed to buying one part of a spread on one exchange and doing the other part on another exchange.

Thus, although the composite NBBO (i.e., taking into account all option quotes from the ISE, P-Coast, AMEX, Philly, and CBOE) makes it look like that a spread is do-able (i.e., buy on the bid and sell on the offer), no broker will take the risk of breaking the spread order into smaller pieces to get the execution. You are going to have to leg it yourself.

Spread orders(multi-leg) are sent to one exhange floor(for listed options) and are executed as a spread, manually on the floor. There is a "spread market" for option spreads made by
Option Market Making firms or locals. To work a spread order is sometimes a lengthy process, unless your broker is set up to
handle spread orders. When you enter a spread order over
the net(option broker), your order is sent to one exchange floor
and the spread is executed either at a market or limit price you
specify. My point was that if you have auto-execution, you may
still have risk trading each spread leg by auto-ex ., even though
you may have a faster execution. I can sell up to 10 contracts
of each leg of a spread at the market on the ISE auto-ex, but there is still the possibility of the market moving before I get the second leg of a spread complete. I would suggest that most traders should give spread orders to their brokers rather than
trying to leg in or out of a spread, even if you have access to
the exchange auto-ex.